Plastic Pollution is a Problem Many Companies are Still Ignoring

A new report from the environmental non-profit CDP reveals the extent of companies’ awareness of their contribution to the plastic crisis. The report comes just ahead of the fourth round of Global Plastics Treaty negotiations (INC-4) later this month, where mandatory corporate disclosure is set to be a key topic.

According to the data, nearly 3,000 companies, representing over US $25 trillion in market capitalization, disclosed information on their use of plastics for the first time in 2023. Despite 42% of these companies mapping where plastics are produced and used within their value chains—a critical initial step—only 21% reported being aware of the plastic-related risks. Furthermore, only a third have undertaken efforts to map the environmental and health impacts of their plastic use.

“The fact that 3,000 companies disclosed voluntarily on plastics in this pilot year is an incredibly positive first step,” said Nathan Cole, CDP’s Head of Sustainable Business. “Our findings show how much actionable data on plastics is needed. Not just to rapidly boost corporate progress and translate awareness into action, but to assess our global progress toward reducing plastic pollution and its impacts.”

The report highlights the need for improved corporate transparency to effectively take on plastic pollution. CDP points out that 70% of surveyed companies have not yet mapped the impacts of their plastic-related activities on the environment and human health, and 64% have failed to set targets for managing their plastic-related impacts, such as usage and waste management practices.

Among the respondents, high-impact sectors like food and beverage, retail, and apparel face the highest risks, including regulatory challenges, supply chain disruptions, and waste management costs.

Despite these challenges, there is a silver lining. Half of the companies that aren't taking action plan to map their impacts and set targets within the next two years. This proactive approach will help companies strategize to reduce plastic usage and associated pollution.

Big-name companies show their support

Some well-known companies have come out in support of mandatory disclosure including Unilever, Stella McCartney, and Superdry have endorsed CDP's call.

“Since Stella McCartney's debut as the first-ever luxury house to never use animal leather, feathers, fur, or skins, we have been on a mission to source and create cruelty-free alternatives that are less reliant on fossil fuels,” a spokesperson from Stella McCartney added. “As a brand that proudly supports bio- and plant-based alternatives to petroleum products, we signed CDP’s corporate open letter calling for mandatory corporate disclosure within the Global Plastics Treaty as a call-to-action for other brands and business leaders to join us in defining their commitments on reducing their plastic use, whilst supporting and scaling their investments in sustainable solutions.”

Cole hammered home the point that companies must take responsibility for their plastic consumption.

“Companies must acknowledge the evidence: no industry is immune to the massive risks associated with plastic pollution,” he said. “CDP has prepared companies to start providing the data that they, investors, and policymakers need to tackle plastic pollution and waste.”